A new $ 1.5 billion Covid-19 recovery fund has been set up to help African countries recover from the Covid-19 bonds.
The co-operating fund Covid-19 Pandemic Response (COPREFA), the fund was launched on Wednesday 4 November by Afreximbank, the International Islamic Trade Finance Corporation (ITFC), and the Arab Bank for Economic Development in Africa (BADEA).
It aims to support African economies to meet challenges including commodity price shocks, a significant decline in tourism and disruption of supply chains and export manufacturing.
In addition, it will also address the sudden decline in financial flows, including a decline in trade and project financing, overpayment of migrants, portfolio investment and foreign direct investment.
Access to the fund is provided by eligible central banks, commercial banks and enterprises to finance the import of medical supplies, as well as agricultural equipment and fertilizers that are essential to address the urgent shortage of food production.
“The Covid-19 pandemic has devastated many economies. Africa has not been spared yet. Afreximbank’s priority has always been to step up as markets fall. That is why we support African economies by force during major problems.
“COPREFA, a product of a unique international partnership, is an important contribution to the global fight against the pandemic and will work with our other programs to ensure that the future of Africa remains bright beyond this economic shock. We thank our partners for the trust, “he said. Professor Benedict Oramah, President of Afreximbank.
The facility is expected to provide rapid financial assistance, and support will be available through direct financing, credit lines, confirmation and refinancing of documentary credits; guarantees, exchange rates and other similar instruments.
Hani Salem Sonbol, CEO of ITFC, one of the co-financiers of the facility, said that the provision of fiscal bandwidth and practical support to SMEs and medical communities in African countries will provide immediate relief from the supply-side constraints. personal protective equipment caused by the pandemic.
“Since the launch of the COVID-19 expansion, ITFC has worked extensively to provide comprehensive support to some of the most vulnerable countries. The multilateral arrangement that ITFC is undertaking with our strategic partners will strengthen economic activity whenever and wherever it is most needed. ‘helps many countries maintain food security at a time when global commodity supply chains are being challenged and import activities are being sharply reduced,’ he said.